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Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20y8 are as follows: a. Net incorne,

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Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20y8 are as follows: a. Net incorne, $215,830. b. Depreciation reported on the income statement, $42,580. c. Equipment was purchased at a cost of $83,280 and fully depreciated equipment costing $22,800 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penaity. e. 7,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $131,520. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20 Y8 Line Item Description Amount Amount Cosh flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Decrease in accounts recervable v Increase in inventones thcrease in prepaid expenses v Increase in accounts payable =v Net cosh flows from onerating activities v Cash flows from (used for) investing activities Statement of cash fows-indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20 ra are as follows: a. Net income, $215,830. b. Depreciation reported on the income statement, $42,580. c. Equipment was purchased at a cost of $83,280 and fully depreciated equipment costing $22,800 was discarded, with no salvage realized, Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Decrease in accounts receivable v Increase in inventones Increase in prepaid expenses Increase in occounts parable Net cash flows from operating activities Cash flows from (used for) investing activities: Cash paidor equipment Net cash tlows used for investing activities Cash flows from (used for) financing activities: Cash recaived from sale of common stock Cash paid for dividends Sash paid to retire mortacae note payoble Net cash flows used for financing actovities x Net increase in cash >x Cosh balance, January 1, 20Y8 Cash balance, December 31, 20 r8

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